Question: Data for three mutually exclusive alternatives are given in the table below. For a MARR of 8%, find the preferred alternative using the B/C ratio.

Data for three mutually exclusive alternatives are given in the table below. For a MARR of 8%, find the preferred alternative using the B/C ratio. Assume a life of 7 years for each alternative.

Alt. A

Alt. B

Alt. C

Initial Cost

$10K

$40K

$20K

Salvage Value

0

$10K

$15K

EUAB

$2.5K

$7.1K

$3K

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